§ 23-65-103 — Report and tax of independently procured coverages

(a) (1) An insured or self-insured whose home state is this state who directly procures, causes to be procured, continues, or renews insurance in an unauthorized insurer, including surplus lines insurance when procured without use of a surplus lines broker pursuant to the insurance laws of this state, within thirty (30) days after the date the insurance was procured, continued, or renewed, shall file a written report with the Insurance Commissioner on forms designated by the commissioner and furnished to the insured upon request. (2) The report shall show: (A) The name and address of each named insured; (B) The name and address of the insurer; (C) The subject of the insurance; (D) A general description of the coverage; (E) The amount of premium currently charged; and (F) Such additional pertinent information as is reasonably requested by the commissioner. (3) If the insurance also covers subjects of insurance resident, located, or to be performed outside this state, a proper pro rata portion of the entire premium payable for the insurance shall be allocated as to the subjects of insurance resident, located, or to be performed in this state, for the purposes of this section. (b) Insurance in an unauthorized insurer procured through negotiations or an application, in whole or in part, occurring or made within this state, or for which premiums are remitted directly or indirectly from within this state, is insurance procured, continued, or renewed in this state within the intent of subsection (a) of this section. (c) (1) For the general support of the government of this state there is levied upon the obligation, chose in action, right represented by the premium charged, or payable for the insurance a tax at the rate of two percent (2%) of the net direct amount of the premium. (2) The insured shall withhold the amount of the tax from the amount of premium charged by and otherwise payable to the insurer for the insurance, and within thirty (30) days after the insurance was so procured, continued, or renewed, and coincidentally with the filing of the report with the commissioner required by subsection (a) of this section, the insured shall pay the amount of the tax to the Treasurer of State through the commissioner. (d) If the insured fails to withhold from the premium the amount of tax levied under this section, the insured is liable for the amount and shall pay the amount to the commissioner within the time stated in subsection (c) of this section. (e) If the tax imposed under this section is delinquent, it shall bear interest at the rate of six percent (6%) per annum, compounded annually. (f) The tax is collectible from the insured by civil action brought by the commissioner. (g) This section does not abrogate or modify and shall not be construed or deemed to abrogate or modify § 23-65-101 , § 23-65-102 , or any other provision of the insurance laws of this state. (h) This section does not apply to life or accident and health insurance. (i) (1) The tax specified in subsection (c) of this section is not due and payable to this state if the unlicensed or unauthorized insurer reports and pays premium tax to this state under § 26-57-603 et seq., or other applicable premium tax laws for these independently procured coverages. (2) Upon receipt of a duplicate payment of tax from the insured and the unlicensed or unauthorized insurer, this state shall refund to the insured the amount of the duplicate payment.

Legislative History

Acts 1959, No. 148, § 206; A.S.A. 1947, § 66-2926; Acts 1991, No. 1123, § 4; 2001, No. 1555, § 1; 2011, No. 1055, § 1.